Here’s what needs to happen for ETH to break its all-time high soon: Ethereum Price Analysis

After facing rejection of the critical $4,000 resistance and returning to the $3,500 support level, Ethereum witnessed a strong resurgence of buying pressure, sparking another impulsive rally.

The price has once again approached the $4,000 resistance, where a potential break could trigger a short squeeze, sending Ethereum higher.

Technical Analysis

By Shayan

The daily chart

Ethereum recently faced a rejection of the key resistance of $4,000, leading to a decline to the critical support level of $3,500. This range has proven to be a key demand area, attracting significant buying pressure. As a result, the market witnessed a strong rally, which sent the price back towards the $4,000 resistance.

Buyers are currently scrambling to regain this psychological and structural barrier, setting the stage for a sustained rally towards the asset’s all-time high. If ETH breaks the $4,000 resistance in the coming days, it could trigger a short event, forcing short positions to unwind and push the price higher.

However, the $4,000 level also serves as a substantial supply zone, and failure to break it could lead to another rejection. In this scenario, Ethereum is likely to continue consolidating within the $3.5K to $4K range in the near term as buyers and sellers compete for control.

The 4 hour chart

In the 4-hour period, Ethereum has been moving within an ascending price channel. After a rejection at the upper limit of the channel near the $4K level, the price pulled back sharply, breaking below the middle limit of the channel and testing the lower trendline around the $3.5K support zone .

This critical juncture led to renewed buying activity, leading to a bullish bounce that pushed ETH towards the middle boundary of the channel at $4,000. The $4K level now presents major resistance, aligning with the upper boundary of the channel.

If buyers manage to overcome this resistance and sustain momentum decisively, Ethereum could embark on another bullish recovery, targeting its ATH. However, in case of another rejection, the price may remain bounded within the ascending channel, with the $3.5k support acting as a key cushion.

Onchain analysis

By Shayan

The futures market plays a crucial role in driving price trends and volatility. Among its key indicators, funding rates provide valuable insight into market sentiment. As shown in the chart, the recent bullish rally from the $3.5k support level was accompanied by a notable increase in funding rates, reflecting the growing interest of traders to take long positions in Ethereum.

This rise in funding rates highlights growing buying pressure and prevailing bullish sentiment, with market participants anticipating further gains in the medium term. If the upward trend in funding rates continues, a break above the $4K resistance will become increasingly likely.

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